Tuesday, October 04, 2022

Business

BYJU's is a blockbuster like 'Brahmastra', says co-founder Divya Gokulnath

IANS | September 20, 2022 04:23 PM

NEW DELHI: Breaking her silence, BYJU's co-founder and Director Divya Gokulnath on Tuesday said that the second blockbuster release of this year, after the movie "Brahmastra", was the financial results of the $22 billion edtech major.

In a LinkedIn post, Gokulnath said that she hasn't seen "Brahmastra" yet, "but I do happen to know BYJU'S results because, as its Director, I was involved in its making".

She mentioned that while BYJU's reported Rs 4, 500 crore loss in FY21 due to accounting change, (or Rs 12.5 crore loss daily), "we made Rs 27 crore in revenue per day in FY22".

Byju Raveendran had earlier told IANS that the losses in FY21 was because 40 per cent of the revenue got deferred on account of two things -- revenue recognition change because of streaming revenue getting recognised over the period of consumption of the product, and EMI or credit sales getting recognised after the complete significant collection was done.

Gokulnath further said that "sensationalism results in more clicks than truth in this age of 280-character reading attention spans".

"It's easy for forget that we are 18 months post FY21, and that BYJU'S has grown more than 4 times in this span. Or that our awidening losses' in FY21 have been cut to half in FY22, " she wrote.

"Let's judge Brahmastra and BYJU'S after seeing the entire picture, " she mentioned.

After six stressful and tough learning months, Raveendran has said that "the worst is finally over" and there is only "growth ahead" as seen in the company's FY22 financial results.

The edtech major clocked gross revenues of nearly Rs 10, 000 crore in FY22, leaving its investors happy and Raveendran, a relieved man.

"Apart from the main reasons, Covid and then the complexity of our business moving from a single product, single geography offering to multi-product, multi subsidiary offering across the world also affected our FY21 results, " emphasised Raveendran, adding that while the revenue got pushed out, the cost expenses during the financial year did not.

In 2007, he founded the test preparation business Byju's Classes, and in 2011 Raveendran founded BYJU's with his wife, Gokulnath.

Last year, he went on an acquisition spree. The edtech unicorn made at least 10 acquisitions for a cumulative transaction value of about $2.5 billion -- including Delhi-based offline test preparatory services provider Aakash for $950 million.

Raveendran said that loss-making acquisitions like WhiteHat Jr, the beleaguered coding platform BYJU's acquired for $300 million, are now being consolidated.

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